Japanese Token Issuers Exempt from 30% Crypto Tax on Gains


Crypto firms in Japan no longer have to pay corporate taxes on unrealised gains from tokens they issue and hold, following a law revision by the National Tax Agency on June 20. This was part of a broader tax reform for 2023 that had been under discussion since August last year. The ruling Liberal Democratic Party (LDP) expects that this will make it easier for various companies to do business involving token issuance, as they are now exempt from the standard 30% corporate tax rate.

The cryptocurrency industry in Japan has seen many changes lately. Since June 1, stricter Anti-Money Laundering (AML) measures have been enforced to trace crypto transactions and align with global standards. Last December, AML legislation was revised after it was found to be inadequate by the Financial Action Task Force (FATF). A law was also passed in June last year prohibiting the issuance of stablecoins by non-banking institutions, limiting it to licensed banks, registered money transfer agents and trust companies.

Japan was one of the first countries to legitimise crypto as a form of private asset, and its regulations are among the most stringent in the world. Following the Mt.Gox and Coincheck hacks, the financial regulator imposed tighter rules on crypto exchanges. These regulations are believed to have enabled a speedy return of assets to FTX users in Japan, in contrast to those in other countries without a clear refund deadline.

Crypto City: Guide to Osaka, Japan’s second-biggest city is a magazine that covers all the latest developments in the cryptocurrency industry in Japan.

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